Real Estate News
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According to the Economic Survey, Project Delays are the Major Cause of Concern
On July 4th 2019, Finance Minister Nirmala Sitharaman shared the Centre’s Economic Survey for 2018- 2019 addressed that that major cause of concern among the buyers is the delay in the completion of the construction in the real estate sector. The report also states that the delay in the completion is the reason for major hindrance in the way of infrastructure in India. The survey authored by the Chief Economic Advisor Krishnamurthy V Subramaniam states that “One of the important concerns in the real estate sector is the legal battle being fought by homebuyers against the builders for delaying projects.” The report further states that...
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Banks Lower Interest Rates Making Home Loans More Affordable
From July 1st, the banks and financial institutes of the country have reduced their home loan lending rates. The decision has come after the Reserve Bank of India has reduced its repo rates. Repo rate is the rate at which the country’s banking regulator, RBI, lends money to the banks and financial institutes. The RBI has already reduced the repo rate to 75 basis points this year so far. The banks that have reduced their MCLR rates are Punjab National Bank and Central Bank of India. Private Banks like ICICI has also reduced their MCLR by 10 basis points. To explain MCLR in layman’s terms, it is the benchmarking lending rate at which ...
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According to the RBI Study, Housing has Become Less Affordable
The builders have been complaining of the slowdown in sales in the real estate sector for a while now. In a recent study conducted by the banking regulator of the country, Reserve Bank of India stated that the housing has become less affordable in the last four years. The study indicates that the developers have been holding onto the prices and have not done any major price correction. According to the study, Mumbai remains the most unaffordable city in the country while Bhubaneswar is the cheapest city among the major cities for real estate. The study measured the affordability by comparing the monthly income of the average home loan borr...
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Budget 2019 Brings Both Cheer and Disappointment to the Developers
For a long while, the real estate sector of the country has been awaiting the sector to be awarded the industry sector. The benefits that will come with the new status would be plenty. And this year developers were hoping for the Finance Minister, Nirmala Shanthiraman, to give the real estate sector the long due recognition and promote it to the industry sector but they were left disappointed. However, the government did roll out new rules that have brought cheers to not just the developers but also the homebuyers. For the affordable housing segment, an additional tax deduction of Rs 1.5 lacs has been provided on the interest paid on the h...
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Real Estate Sector Looking Forward to Industry Status in Budget 2019
The real estate developers are looking forward to the industry status on the real estate to be presented by the Finance Minister Nirmala Sitharaman on July 5th. The developers have been expecting a lot of things from the budget, and most of them have been partially fulfilled when the affordable housing received the industry status in 2018. Developers are looking forward to the real estate sector to get the industry status so they can raise funds at a lower rate and reduce the cost of the capital which will eventually affect the overall cost of the project cost. Gaining the industry status will be beneficial for the developers as it will...
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Everything You Need to Know About House Hacking
Being a popular concept in the west, house hacking is making its way to the Indian real estate. It is a unique way of investing the property that might be a bit heavy on your pocket but making money out of it cleverly. Before we proceed, let us discuss in depth what is house hacking and how it can be of advantage to the home buyers: In house hacking, you invest in the property that is a bit expensive or in the prime location. Then to make sure that the property is not killing your finances, you rent out a portion of the property while living in another part of the said property. This allows the homebuyers, especially young home buyer...
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Don’t Overlook These House Defects
Over the years, your house goes through wear and tear as well. Some problems and defects may arise after a specific time, and often homeowners tend to overlook these minor defects. But if not given the attention or fixed, they might cause you a considerable sum of money in future. We discuss the defects that one should get fixed before it is too late: 1. Damp patches: This is one of the most common problems and can be found in most homes. The owners generally wait for the rainy season to go away so that the damp patches can dry up again. But these patches are caused by more than wet weather. If not treated at the right time, they m...
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Real Estate Sector’s Expectation from Budget 2019
The new budget will be presented on July 5, 2019, by the new finance minister Nirmala Sitharaman. Well, the focus area of this year’s budget might be the exports, manufacturing and agriculture, but there should be equal treatment for the real estate sector as well. Therefore, what the realty sector is expecting from Budget 2019, let’s understand. Industry status and single-window clearance: these two are long awaited from the government. Approvals at multiple levels for a project result in its delay. Therefore, a single window clearance and an industry status will reduce the project timelines for the developers and help them get fund...
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Real Estate Sector gets Another Boost with Center Planning to Launch a Common Platform
It is indeed another good news for the real estate sector and home buyers, as the Government plans to bring a single platform for projects, developers, agents etc. The platform will combine the Real Estate Regulatory Authority (RERA) of all states and Union Territories (UTs) while providing information related to best practices in the housing sector. Housing and Urban Affairs Secretary Durga Shanker Mishra said, “The platform would provide all the rulings about the properties in different states categorised according to the subject and with a summary. This common window will also provide suggestions about real estate developers, projec...
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Lower GST on Cement Will Not Make Apartments Cheaper
Post general election, the first meeting of GST Council began on 21st June. In this 35th edition of the council meeting, the council is expected to take the critical decision on the reduction of GST on electric cars, revenue system, of the states and the new return filing system. The developers are looking forward to the meeting. It is expected that the GST slab on the cement, which is 28 percent at present will come down to 18 percent. The developers have been requesting the council to reduce the GST on cement since the GST was rolled out. Bringing down the GST rates will help create more jobs in the construction and development areas....
